Amazon breaks $200B value mark amid concerns of anti-competitive behavior
This is the third consecutive year Amazon has led the way as the world's most valuable brand
Amazon became the first-ever brand to break the $200 billion value mark, according to Brand Finance's Global 500 2020 Report released Wednesday.
This is the third consecutive year Amazon has led the way as the world's most valuable brand, growing 18 percent from $187.9 billion in 2019 to $220.8 billion in 2020, just ahead of Google and Apple, according to the report.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 207.09 | +7.59 | +3.80% |
"What Amazon has done particularly well -- it's value proposition has always been 'the everything store.' When you are 'the everything store,' you can reach across multiple [marketplaces]," Brand Finance Director of Americans Laurence Newell told FOX Business, adding that while Google and Apple are by no means suppressed by Amazon, they may be more limited in terms of the products and services they offer.
Tahsha Sydnor stows packages into special containers after Amazon robots deliver separated packages by ZIP code at an Amazon warehouse facility in Goodyear, Ariz. (AP Photo/Ross D. Franklin)
The report notes that Amazon has recently taken on cloud computing, artificial intelligence (AI), electronics, video streaming, logistics and more.
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Brand Finance CEO David Haigh said Amazon's "situation today seems more than comfortable" in a Wednesday statement.
"The disrupter of the entire retail ecosystem, the brand that boasts the highest brand value ever, Amazon continues to impress across imperishable consumer truths: value, convenience and choice," he said. "Today, Amazon’s situation seems more than comfortable, but what will the roaring 20s hold in store?"
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The tech giant's success, however, comes amid growing concerns that it is practicing monopolistic behavior. Amazon has faced particular scrutiny for its dominance as both a marketplace and private-label seller, as well as not using the immense power it has garnered in recent years to stop third-party sellers from selling counterfeit products at extremely low prices, forcing real brands into expensive lawsuits.
While it's hard to legally call Amazon a monopoly, "it is certainly dominant, but it does compete," Newell said.
Jeff Bezos, founder of Amazon, and his girlfriend TV presenter Lauren Sanchez arrive at a company event in Mumbai, India, Jan. 16, 2020.
"In one sense, we compete against Amazon, and in another sense, we partner with Amazon, and we also buy from Amazon. ... It's a new day, but it's not gonna get any easier. It's right to have this conversation," he added.
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2020 Democratic presidential candidates Sens. Elizabeth Warren (D-Mass.) and Bernie Sanders (I-V) -- both staunch critics of Big Tech -- have suggested breaking up Amazon and other tech giants like Google and Facebook into multiple companies to distribute their power.
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A group of small tech executives broke boundaries on Saturday when they called on the U.S. government to help regulate Big Tech companies as their monopolistic practices continue to develop during a House antitrust subcommittee hearing. They claimed the anti-competitive practices of companies like Amazon stifle the success of small businesses and startups.
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Newell said he thinks "it's possible" Amazon founder Jeff Bezos might decide to break up his company before regulators force him.
"There wouldn't be too much risk associated with [breaking up Amazon]," he said. "It can afford to reach a plan B. Innovation runs through their blood. Making and acting on that type of decision is something they can do very quickly."
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